Nearly 33% of American workers have less than $1,000 stashed away for retirement. A recent study released by the Employee Benefit Research Institute (EBRI) as part of the Retirement Confidence Survey (RCS), also found that $25,000 in savings puts the average American in better shape than 50% of respondents.
According to the study, of those who had no IRA, defined contribution, or defined benefits plan, 64% were in the category that reported having less than $1,000 in retirement savings. Respondents who reported having one of these plans were spread out across the spectrum of savings value. 20% of those with a plan had over $250,000 in their nest egg, and 17% had between $1,000 and $9,999.
The study also found that 71% of employed workers have been offered a retirement savings plan and 83% of that group contributed money to their employer-based plan. Workers with an employer-based retirement plan were also more likely to engage in alternate retirement sources. 63% of respondents that have money in an employer plan also own an IRA, and 49% have a third source of retirement savings.
The study appears to show that the mindset of saving is reinforced when an employer assists an employee with their future savings plans.
The RCS also discovered that 64% of workers believe they are behind in saving’s, while 48% have sat down and calculated how much money they would need in savings to have a comfortable retirement.
Why is it so hard to save money these days? Debt and an increase in day-to-day expenses, along with the rising cost of living are the main reasons.
69% of respondents said they could save an extra $25 per week if they stopped eating out so much.
The survey found that 67% of workers expect to do some work for pay during retirement, but only 23% of retirees actually follow through on that goal. The study also found that half of retirees left the workforce early, with 60% leaving early because of health/disability reasons and 27% leaving because of downsizing.